MAN 111-BHCC CUSTOM-W/MY MGMT.LAB>CI<
14th Edition
ISBN: 9781323859735
Author: Robbins
Publisher: PEARSON
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Chapter 2, Problem 10ED
Summary Introduction
To explain:
Facts for and against the decision to remove a sports championship title of one team and offering it to another team.
Introduction:
The case states of an incident where a championship title of children’s sports team was removed and was given to another team as a result of a scandal done by the team officials. The appropriateness of this decision made by the chief executive officer of the institution organizing the said sports event has been subject to much discussion. Making decisions is part and parcel of any manager’s work life. However, there shall be instances where the validity or appropriateness of such decisions is questionable.
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Students have asked these similar questions
Wired & Plugged specializes in manufacturing modern electronic components. It also builds equipment that produces the components. The marketing and production directors advised the president about a proposed manufacturing facility in the form of a payoff table as shown.
Construct an Opportunity Loss (Regret) table. What decision should be made under Maximax Regret?
4. Transrail is bidding on a project that it figures will cost $400,000 to perform. Using a 25% markup, it will charge $500,000, netting a profit of $100,000. However, it has been learned that another company, Rail Freight, is also considering bidding on the project. If Rail Freight does submit a bid, it figures to be a bid about $470,000. Transrail really wants this project and is considering a bid with only a 15% markup to $460,000 to ensure winning regardless of whether or not Rail Freight submits a bid.
a. Prepare a profit payoff table from Transrail’s point of view. (6 points)
b. For this payoff table find Transrail’s optimal decision using (1) the pessimistic approach, (2) the optimistic approach, and (3) minimax regret approach. (10 points)
c. If Rail Freight is known to submit bids on only 25% of the projects it considers, what decision should Transrail make? (5 points)
d. Given the information in (c), what is EVPI? (5 points)
Pls help ASAP on both
Chapter 2 Solutions
MAN 111-BHCC CUSTOM-W/MY MGMT.LAB>CI<
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